A subsidiary of Nigerian Guaranty Trust Bank, GT Bank opened an office in London in May 2008 to offer retail and wholesale banking products and services to private, corporate and institutional clients.
The market watchdog claimed that the accused lender failed to set up an effective anti-money laundering policies and procedures when they formed their UK operations in May 2008.
Due to these failings, during the period between May 2008 and June 2010, the lender failed to investigate potential clients against sanctions lists as well as did not ask them to disclose their sources of income.
The FCA enforcement head Tracey McDermott said, "Banks are at the front line in ensuring the proceeds of crime do not enter the UK financial system.
"GT Bank’s failures were serious and systemic and resulted in an unacceptable risk of handling the proceeds of crime."
GT Bank settled the charges at an early stage of the probe and got a 30% discount on its fine, otherwise it would have been £750,000.
